Why shouldn’t we expect a drop in the price of Bitcoin after halving?12. May 2020
The Bitcoin (BTC) halving is scheduled for May 12 and traders have mixed feelings about the direction of the BTC price after the event. Some believe there will be a “sell after news” drop, while others expect a continuation of the upward trend.
If the BTC, the most traded asset in CoinMarketCap, rises in price after the halving and breaks its 315-day cycle in which it saw five consecutive failed attempts at a prolonged rally, a sharp rise could occur.
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Will the upward momentum continue after the halving? The upcoming Bitcoin halving is the only mechanism that exists that affects BTC production and supply. Since Bitcoin is a deflationary currency due to its unchanging monetary policy, anything that affects its supply will eventually impact its price.
Traders have come to anticipate a sale after halving, because it is an event that is set in stone. This event occurs once every four years; previous reductions were triggered in 2012 and 2016.
In the previous halvings, the price went down afterwards, recovering in the following months and finally reaching new highs 10 or 11 months later.
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The highly expected nature of halving increases the likelihood of dumping on the market after its activation. However, if that happens, BTC can potentially move up into the macro range of USD 11,500 and USD 12,400.
A chart shared by a cryptotrader called “Galaxy” shows the possible price trend if it is not corrected after the halving.
“You can’t ignore the fact that BTC is going to USD 13,000,” the trader said as he explored the Bitcoin scenario if it cleanly breaks out of the USD 9,500-9,900 resistance area.
Bitcoin fractal if it does not correct after the halving
This short-term scenario for Bitcoin would result in the dominant crypto-currency entering a completely new price cycle and ensuring a fresh start for a new range of several years.
Most technical indicators point to a reversal
The probability of an extended Bitcoin rally immediately after halving without any correction
- Bitcoin Era
- Immediate Edge
- Bitcoin Billionaire
- Bitcoin Revolution
- The News Spy
- Bitcoin Profit
- Bitcoin Trader
- Bitcoin Circuit
- Bitcoin Evolution
- Bitcoin Code
Another crypttrader known as “General Byzantine” stated that virtually all major technical indicators suggest that Bitcoin will suffer a setback after a 150% price increase since March.
“Selling signals. Selling signals everywhere. Currently flat, waiting for good preparation,” said the trader.